Banking, insurance and financial services changes after Brexit

When the United Kingdom (UK) leaves the European Union (EU) there could be some changes to how banking, insurance and finance products work. Here’s what you need to do to get ready for the changes when the UK leaves on 31 October 2019.

Will I still be able to send or pay in Euros electronically?

UK leaves either with or without a deal

You’ll still be able to send or pay in Euros electronically if the UK leaves with or without a deal.

However, you may find the time taken to process Euro payments and transfers may increase.

If you need to make a payment by a fixed deadline, it might be a good idea to leave some extra time to have the payment processed.

I have a UK bank account. Will I be able to use my card to pay merchants in the EU and EEA?

UK leaves either with or without a deal

This is unlikely to change after Brexit regardless of whether the UK leaves with or without a deal.

This is also the case if you have a bank account with a provider based in the EU, or the EEA and want to use your bank card in the UK.

I live in the UK. How will Brexit affect insurance, personal pensions, annuities or other financial products from firms based in the EU or EAA?

UK leaves either with or without a deal

Your coverage or product should not change because of Brexit, regardless of whether the UK leaves with or without a deal.

This is because the government has legislated to enable financial services providers based in the EEA to continue providing services in the UK for a temporary period. Your provider should tell you if your products are affected in any way.

If you have difficulty when the time comes to renew your insurance, make sure you shop around to find a deal that’s right for your needs.

If you would like advice about a financial product, you should consider speaking to a qualified financial adviser.

How do I find out where my product provider is based or authorised?

UK leaves either with or without a deal

You can use the Financial Services Register to find out where a financial services provider is based or authorised, and if your financial service provider is EEA authorised.

Deposit protection

Will the Financial Services Compensation Scheme (FSCS) apply after Brexit?

UK leaves with a deal

When the UK leaves the EU with a deal, it’s likely that there will be an agreed implementation period starting from 31 October 2019. During the implementation period, the existing FSCS protection framework will not change as a result of Brexit.

FSCS protection for deposits will depend on a number of factors including where the firm is authorised and in which jurisdiction the firm holds your deposits. Check with your firm for more information.

UK leaves without a deal

When the UK leaves the EU in October 2019 without a deal, there will be no implementation period. In this scenario, FSCS protection may change. Please refer to the questions below and/or contact your firm directly.

Further information on the impact of Brexit for the Financial Services Compensation Scheme protection are on FSCS.org.uk and the Money Advice Service website.

I use a UK bank/building society/credit union in the UK. Will FSCS protect my money after Brexit on 31 October 2019?

UK leaves without a deal

Yes. Eligible deposits held by UK authorised banks, building societies and credit unions in the UK will be protected by the FSCS after the UK’s exit from the EU (assuming the firm continues to be UK authorised).

FSCS protection is not dependent on where you’re living, but where the bank, building society or credit union holds the deposit. If a deposit is held by a branch in the UK, FSCS protection applies (unless it is a branch of a Gibraltarian-based firm, in which case, protection would be the responsibility of the deposit guarantee scheme in Gibraltar).
Your bank, building society and credit union are obligated to provide you with an annual information sheet that describes your depositor protection. Check with your firm for more information.

I am in the UK and bank with a UK branch of an EEA firm, will I still be protected?

UK leaves without a deal

When the UK leaves the EU in October 2019 without a deal, UK branches of EEA authorised deposit-taking firms (e.g. an EEA bank) will be treated as UK authorised and members of the FSCS. If these firms hold your deposits in the UK, eligible deposits will be FSCS protected up to £85,000.

Deposits held in UK branches of Gibraltarian-based firms are treated differently and depositor protection will remain the responsibility of the Gibraltar deposit guarantee scheme.

I’m a living in the EEA and bank with an EEA firm, will I still be protected?

UK leaves without a deal

Depositors who bank with EEA-authorised firms in the EEA should not see their deposit protection change – they should currently be covered by an EEA deposit guarantee scheme, which will continue after Brexit.

Please contact your firm for more information or visit the EFDI website for a full list of EEA deposit protection schemes.

I’m in the EEA and bank with an EEA branch of a UK firm and am currently protected by the FSCS. Will I still be protected?

UK leaves without a deal

When the UK leaves the EU in October 2019 without a deal, deposit protection previously provided by the FSCS for deposits held in EEA branches of UK firms will cease. However, you should be protected by an EEA deposit guarantee scheme instead, but this will depend upon rules in each EEA jurisdiction. Any change in, or loss of, protection should be notified to customers by firms.

Eligible deposits held in Gibraltarian branches of UK firms are treated differently and will continue to be protected by the FSCS after Brexit.

Please contact your firm for more information or visit the EFDI website
for a full list of EEA deposit protection schemes.

Will Brexit affect the value of my stock market investments and invested pension funds?

UK leaves either with or without a deal

Regardless of how the UK leaves the EU, it’s difficult to predict the impact on your individual investments because this can depend on several factors

It’s possible leaving the EU could create a period of temporary financial instability, which could mean the value of your investments in the short term could fall. Whether they fall, and if so by how much and how long is difficult to predict.

If you don’t require access to these funds in the immediate future this may not be a big problem because markets are likely to recover over time.

However, if you’re planning to cash in any investments in the immediate future, get professional advice as soon as possible.

Would UK providers still be able to provide financial services to UK nationals living in the EU and EEA?

UK leaves either with or without a deal

Many UK providers are taking steps so they can keep offering services to you if you’re living in the EU or EEA, regardless of whether the UK leaves the EU with or without a deal.

If your provider needs to make any changes to your product or the way it provides it, they should contact you.

If you have any concerns about whether you might be affected, you should contact your provider.

Can I complain to the Financial Ombudsman Service?

UK leaves with a deal

When a deal is agreed between the UK and the EU then there should be no change to complaints the Financial Ombudsman Service is able to look at.

UK leaves without a deal

When there is no deal, the Financial Ombudsman Service expects to be able to continue to look at complaints that relate to activities before the UK left the EU in the same way as before.

If a financial business established in the EEA wants to operate in the UK after Brexit, it will need to join the FCA’s temporary permissions regime.

Businesses that join the temporary permissions regime will come under the jurisdiction of the Financial Ombudsman Service

Will the FSCS deposit protection limit of £85,000 be affected by or revised as a result of Brexit?

UK leaves either with or without a deal

There are no plans to revise the FSCS deposit protection limit because of Brexit.

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